In the second quarter of 2024, Portugal's online gambling revenue surged to an unprecedented €261.8 million. This figure marks the eighth consecutive quarter in which online gambling revenue in the country has reached an all-time high, reflecting a continued upward trend in the sector.
The Q2 2024 total narrowly surpassed the previous record of €260.8 million set in the first quarter of this year and is 27.2% higher compared to the same period in 2023. These figures were reported by the Serviço de Regulação e Inspeção de Jogos (SRIJ), the regulatory authority for gambling in Portugal, in their official revenue report Registo da atividade de jogo online em Portugal | Relatório 2º trimestre 2024 [pdf].
Despite the robust growth in online gambling, local operators have raised concerns about the rising threat posed by illegal gambling activities. As the legal online gambling market flourishes, the illegal market continues to grow, potentially undermining the success of licensed operators in the country.
Online Casino Games Dominate Revenue
When breaking down the quarterly performance, online casino games were the largest contributor to revenue, generating €158.5 million in Q2. This represents a 29.9% increase from the €122.0 million reported in the same period last year. However, it is slightly lower than the €160.3 million recorded in Q1 2024.
’’ In terms of spending, players wagered a total of €4.37bn across online casino games during Q2. This is 34.7% higher year-on-year and also 0.4% ahead of Q1.’’
Players wagered a total of €4.37 billion on online casino games during the quarter, a significant 34.7% increase year-on-year and a modest 0.4% rise from the previous quarter. Slots remained the most popular choice among players, accounting for 82.3% of all online casino spending. French roulette followed with 6.5% of the total, while blackjack represented 4.9%. The remaining wagers were distributed across dice games and poker.
In the realm of sports betting, online revenue reached €103.3 million, a 23.1% increase compared to Q2 2023. This figure is also 2.8% higher than the €100.6 million recorded in Q1 2024. However, despite the boost provided by the Euro 2024 football tournament, which began in the latter part of the quarter, the total amount wagered on sports during Q2 was €462.3 million, a 19.5% decrease from Q1.
Football was the dominant sport in terms of betting activity, accounting for 69.3% of all sports bets placed during the quarter. Tennis followed with 19.9% of the total bets, basketball contributed 6.8%, and other sports made up the remaining 4.1%.
Rise in New Registrations and Self-Exclusions
The second quarter also saw an influx of new players, with 287,600 customers registering for online gambling accounts. However, 136,800 accounts were canceled during the same period, leading to a total of over 4.4 million active online gambling accounts in Portugal by the end of June 2024.
Self-exclusion rates also increased, with 47,300 consumers opting to block themselves from gambling in Q2. This brought the total number of self-excluded players to 256,900 by the end of the quarter. In response to illegal gambling activities, the SRIJ issued closure notifications to 38 websites operating unlawfully in the country.
While the online gambling market in Portugal continues to thrive, the land-based sector is experiencing a decline. Total revenue from land-based gambling in Q2 2024 fell to €63.7 million, representing a 4.5% decrease compared to the same period last year.
Revenue from physical slot machines, which accounted for 78.4% of all land-based revenue, saw a slight increase of 0.8%, reaching €50.0 million. However, revenue from other casino-style games and bingo, which totaled €13.8 million, dropped by 19.9%. The SRIJ noted declines in several traditional casino games, including baccarat, blackjack, and American roulette.
Concerns Over the Growing Illegal Gambling Market
The continued expansion of Portugal's online gambling market has been accompanied by concerns from industry stakeholders about the rising prevalence of illegal gambling. A recent survey conducted by the Portuguese Online Gambling and Betting Association highlighted the ongoing challenges faced by the regulated market. The study revealed that 41% of all players in Portugal use unlicensed gambling platforms, with this figure rising to 52.1% among individuals aged 18 to 34.
The association has repeatedly called attention to the high taxes imposed on licensed operators, which include an 8% turnover tax on sports betting and a 25% gross gaming revenue tax on online casino games. These financial burdens, they argue, make it difficult for licensed operators to compete with illegal platforms.
In response to these concerns, the association has filed criminal complaints against social media influencers who have been promoting illegal gambling sites, underscoring the urgent need for more stringent enforcement and regulation in the market.
Source:
''Portugal online gambling revenue hits record high in Q2, land-based declines'', igamingbusiness.com, August 19, 2024.
